Union Telecom Minister Ashwini Vaishnaw on Saturday said the government has decided to convert the interest dues of Vodafone Idea into equity after receiving a firm commitment from Aditya Birla Group to run the company and bring necessary investment.
He further said, "We had sought a firm commitment that Aditya Birla Group would run the company and bring necessary investments. Birlas have agreed and hence we've agreed to convert. We want India to be a 3-player market plus BSNL&ensure healthy competition for consumers."
The Centre will be issued the equity shares with a face value of Rs 10 each at the same price.
The regulatory filing by Vodafone Idea said, "Ministry of Communications...passed an order today ie 3 February, 2023...directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India."
This relief for the firm is a part of the reforms package that the Centre announced in September 2021.
"The total amount to be converted into equity shares is Rs 16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of Rs 10 each at an issue price of Rs 10 each," the filing stated.
VIL earlier said that with the conversion of dues into equity, the government will get around a 35 percent stake in the company.